Would it be possible to get a mortgage

chrislee2810

Hi guys,

I have had credit problems in the past;

CCJ £308, issued 30/09/11 and settled 25/02/13
Default £400, issued 11/01/12 settled
Default £189, issued 29/12/11 settled

In 2011 I was made redundant, hence the defaults. I have been in my current address for 4 years and in my job for 5 years. I am currently on £63000 a year and my credit utilisation is 50%. I pay out £600 pcm (not including rent)

My wife is self employed and has no adverse. Her out goings are £500 pcm. Year one she earned £15k, year 2 £19k, year 3 £23k and year 4 £40k.

We would ideally like to find a house for £200k with a £20k deposit. We will be looking in September and may be able to get our deposit up to £30k.

Do you think there is any hope for us?

HappyMJ

chrislee2810 wrote: »

Hi guys,

I have had credit problems in the past;

CCJ £308, issued 30/09/11 and settled 25/02/13
Default £400, issued 11/01/12 settled
Default £189, issued 29/12/11 settled

In 2011 I was made redundant, hence the defaults. I have been in my current address for 4 years and in my job for 5 years. I am currently on £63000 a year and my credit utilisation is 50%. I pay out £600 pcm (not including rent)

My wife is self employed and has no adverse. Her out goings are £500 pcm. Year one she earned £15k, year 2 £19k, year 3 £23k and year 4 £40k.

We would ideally like to find a house for £200k with a £20k deposit. We will be looking in September and may be able to get our deposit up to £30k.

Do you think there is any hope for us?

Yes that to me looks fine. I would use the deposit to pay off any credit cards that charge interest.

The CCJ is recorded from the first date and once 6 years have passed then it has no affect so if you can I'd wait until September 2017 and you will get the best possible mortgage rates available. It's not a particularly large CCJ so I wouldn't worry about it too much.

Applying now though won't be a problem if you've found your dream home and want to make an offer.

I would before making an offer get an agreement in principle so you know that the mortgage will proceed to completion.

Thrugelmir

chrislee2810 wrote: »

my credit utilisation is 50%.

Means nothing. The hard numbers are far more important. As you've £20k in cash but how much of this is borrowed money. i.e. debt.

chrislee2810

The 20k was saved from income, the amount that I owe on credit cards is 5k, 2.5k is on 0%.

chrislee2810

The plan was to have it all settled by September. The only thing that I won't be settling is my car finance which is £179 per month with 4K left to pay. I am fully aware that I would not be able to get high street rates but I am sick of renting now and the kids are getting bigger and we need more space.